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LB 1109

Eliminate certain sales and use tax exemptions and a renewable energy tax credit and change provisions relating to the Nebraska Advantage Research and Development Act and the ImagiNE Nebraska Act

109th Legislature (2025-2026) Introduced by Brad von Gillern

LB 1109 eliminates sales tax exemptions and renewable energy credits while restricting two major Nebraska business incentive programs to increase state revenue.

Notice of hearing for February 04, 2026
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Bill Summary · LB 1109

Legislative bill overview

LB 1109 eliminates specific sales and use tax exemptions, removes a renewable energy tax credit, and modifies provisions under two major Nebraska economic incentive programs: the Nebraska Advantage Research and Development Act and the ImagiNE Nebraska Act. The bill appears designed to reduce tax expenditures and potentially reshape how the state's business incentive programs operate.

Why is this important

Tax exemptions and credits represent foregone state revenue that could fund public services, but they're also tools used to attract and retain businesses. Changes to these provisions could affect business investment decisions, renewable energy development incentives, and the competitiveness of Nebraska's economic development programs compared to neighboring states.

Potential points of contention

  • Revenue impact: Eliminating exemptions and credits increases state revenue but may reduce incentives for business expansion, research investment, and renewable energy projects that the state previously prioritized
  • Renewable energy policy: Removing the renewable energy tax credit conflicts with national clean energy trends and could disadvantage Nebraska in the competitive renewable energy market
  • Economic development competitiveness: Scaling back the ImagiNE Nebraska Act and R&D incentives may make Nebraska less attractive to businesses and researchers compared to competing states offering similar or more generous programs

Compiled from official sources — confirm details with the bill’s official record.

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